WORLD TRADE  
ORGANIZATION  WT/DS48/26 
22 March 2011 
 (11-1408) 
 Original:   English/ 
 French 
 
 
EUROPEAN COMMUNITIES – MEASURES CONCERNING 
MEAT AND MEAT PRODUCTS (HORMONES) 
 
Joint Communication from the European Union and Canada  
 
 
 The following communication, dated 17 March 2011, from the delegations of the European 
Union1 and Canada to the Chairperson of the Dispute Se ttlement Body, is circulated at the request of 
those delegations.  
_______________ 
 
  Please find attached a Memorandum of Unders tanding between the Government of Canada 
and the European Commission regarding the importati on of beef from animals not treated with certain 
growth-promoting hormones and increased duties app lied by Canada to certain products of the 
European Union, in relation to the dispute  European Communities –  Measures Concerning Meat and 
Meat Products (Hormones)  (DS48). 
 We would be grateful if this Memorandum of  Understanding could be circulated to the 
Dispute Settlement Body.  
 
For the European Union:    For the Government of Canada:     
 
_________________________    _________________________  H.E. Mr. Angelos Pangratis Ambassador 
Permanent Representative of the European Union  
to the World Trade Organization  H.E. Mr. John Gero 
Ambassador 
Permanent Representative of Canada to the 
World Trade Organization  
   
Geneva, Switzerland on this 17
th  day of March 2011 
                                                      
1 On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on Europe an Union and the Treaty 
establishing the European Community (done at Lisbon , 13 December 2007) entere d into force.  On 29 
November 2009, the WTO received a Verbal Note (WT/L/7 79) from the Council of th e European Union and the 
Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 1 December 
2009, the European Union replaces an d succeeds the European Community. WT/DS48/26 
Page 2  
 
  M
EMORANDUM OF UNDERSTANDING BETWEEN  
THE GOVERNMENT OF CANADA AND THE EUROPEAN COMMISSION  
REGARDING THE IMPORTATION OF BEEF FROM ANIMALS NOT TREATED WITH CERTAIN  
 GROWTH -PROMOTING HORMONES AND INCREASED DUTIES APPLIED BY CANADA TO CERTAIN 
PRODUCTS OF THE EUROPEAN UNION  
 
   The Government of Canada ("Canada") and the European Commission ("the Commission"), 
jointly referred to as "both sides", have reach ed an understanding, as documented in this 
Memorandum of Understanding ("MOU"), regardin g a roadmap concerning intended steps involving 
the importation of High Quality Beef into the Eur opean Union ("EU") and the level of increased 
duties imposed by Canada on certain EU products in connection with the dispute European 
Communities – Measures Concerning Meat  and Meat Products (Hormones) ("DS48"). 
 
 Canada and the Commission envisage the initiati on of the necessary internal procedures for 
taking the steps envisaged in this MOU. Following  completion of those steps, Canada and the EU 
envisage notifying this MOU as a mutually agreed solution to the Dispute Settlement Body ("DSB").    This MOU is not an international agreement between Canada and the Commission, nor does it 
otherwise create any legal obliga tions between Canada and the EU or between the signatories.  
 
  Signed in duplicate at Geneva, Switzerland on this 17
th day of March 2011, in the English and 
French languages.  
 
 
    
 
       _____
      _________      
FOR THE GOVERNMENT OF CANADA   FOR THE EUROPEAN COMMISSION
             WT/DS48/26 
 Page 3 
 
 
  ANNEX 
 
1. In order for Canada and the Commission to ga in additional experience from expanded trade in 
High Quality Beef and to facilitate a transition to lo ng-term conditions for such trade, Canada and the 
Commission envisage the following:  
(a) During the first phase ("Phase 1"): 
(i) Expansion of the market access of High Quality Beef to the EU; and 
(ii) Suspension of all increased duties imposed by Canada on certain EU products 
pursuant to the authorization of the World Trade Organization ("WTO") of 1999 (the "increased duties");  
(b) The opportunity to move to a second phase ("Phase 2") for further expansion of 
market access of High Quality Beef to the EU; and 
(c) The further opportunity for entering into a third phase ("Phase 3") with regard to 
DS48.  
(d) For the purposes of this MOU, "High Quality Beef" is defined as follows: 
(i) Beef cuts are obtained from carcasses of heifers and steers less than 30 
months of age which have only been fed a diet, for at least the last 100 days before slaughter, containing not less than 62 % of concentrates, and/or feed grain co- products on a dietary dry matter basis, that meets or exceeds a metabolisable energy content great er than 12.26 mega joules per one 
kilogram of dry matter. 
(ii) The heifers and steers that are fed the di et described in point (i) are fed, on 
average, no less than 1.4 % of live body weight per day on a dry matter basis. 
(iii) The carcass from which beef cuts are derived is evaluated by an evaluator 
employed by the national government who bases the evaluation, and a resulting classification of the carcass, on a method approved by the national 
government. The national government evaluation method, and its 
classifications, evaluates expected carcass quality using a combination of carcass maturity and palatability traits of the beef cuts. Such an evaluation 
method of the carcass includes, but is not limited to, an evaluation of the maturity characteristics of colour and texture of the longissimus dorsi  muscle 
and bone and cartilage ossification, as well as an evaluation of expected 
palatability traits, including a combination of the discrete specifications of 
intramuscular fat and firmness of the longissimus dorsi  muscle. 
(iv) The cuts are labelled in accordance with Article 13 of Regulation (EC) 
No. 1760/2000 of the European Parliament and of the Council. 
(v) The indication "High Quality Beef" may be added to the information on the 
label. 
2. (a) At the beginning of Phase 1, an increase  of an annual quantity of 1500 Metric Tonnes 
of High Quality Beef to the autonomous tariff rate quota for High Quality Beef, with WT/DS48/26 
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  an in-quota tariff rate of zero (0%), estab lished by the EU in Council Regulation (EC) 
No. 617/2009, of 13 July 2009, is envisaged.  
  (b) As soon as possible in the weeks following th e signing of this MOU, the suspension 
of all increased duties on certain EU products under the European Union Surtax 
Order of Canada is envisaged. Canada will initiate the domestic process for such 
suspension upon the signing of this MOU. 
(c) Should Phase 2 begin, as described in paragraphs 1(b) and 5(a)(iii), an increase is 
envisaged in the quantity of the autonomous tariff rate quota referred to in paragraph 2(a) to 3,200 Metric Tonn es product weight, at a zero duty rate. 
(d) Should Phase 3 begin, as described in paragraphs 1(c) and 5(d): 
(i) The maintenance of the quantity of the autonomous tariff rate quota referred 
to in paragraph 2(a), at the level specifi ed in paragraph 2(c), is envisaged; as 
well as  
(ii) The termination of all the increased dut ies imposed in connection with DS48. 
3. If the event envisaged in paragraph 2(a) has not occurred by July 31, 2012, Canada may 
reinstate the increased duties imposed by Canada  on the EU products that are listed in the European 
Union Surtax Order of Canada, pursuant to the authorization of the WTO of 1999.   
4. (a) It is envisaged that the autonomous tari ff rate quota referred to in paragraph 2 will be 
administered by the Commission in accord ance with the rules applied for similar 
import tariff rate quotas for agricultural pr oducts managed by a system of import 
licenses. 
 
(b) It is envisaged that the Commission will implement and administer the autonomous 
tariff rate quota referred to in this M OU in accordance with Article XIII of the 
General Agreement on Tariffs and Trade (GATT) 1994, including its interpretative 
notes, and the Agreement on Import Licensing Procedures .  
(c) It is envisaged that the Commission will make every effort to administer the 
autonomous tariff rate quota referred to in  paragraph 2 in a manner that allows 
importers to make full use of it. 
5. (a) Both sides envisage: 
 
(i) Monitoring and periodically reviewing the operation of this MOU;   
(ii) Upon the request of either side, additio nal bilateral consultations regarding 
the operation of this MOU, including issues of quota management, no later than thirty (30) days following the rece ipt of a request for consultations in 
writing; and  
(iii) Meeting no later than three (3) mont hs from the commencement of Phase 1, 
to review the operation of Phase 1, with a view to entering into Phase 2. 
(b) Should Phase 2 begin, both sides envisage, beginning no later than six (6) months 
from the date on which the increase in the autonomous tariff rate quota described in  WT/DS48/26 
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  paragraph 2(c) occurs, meeting to review the operation of Phase 2, with a view to 
entering into Phase 3.  
(c) Such a review will cover, inter alia , the following issues: 
(i) The duration of Phase 3; 
(ii) The status and effect of this MOU under the Understanding on Rules and 
Procedures Governing the Settlement of Disputes (DSU); 
(iii) The consequences of non-occurrence of  an envisaged event foreseen under 
this MOU; and 
(iv) The status and disposition of any di spute settlement proceeding in DS48.  
(d) After concluding the review referred to in  paragraph 5(c), if both sides reach an 
understanding on conditions for entering into  Phase 3, they may amend this MOU in 
writing in order to reflect the conclusions of the review.   Such an amendment will not alter the core steps referred to in paragraph 2(d).   
6. (a) Phase 1 is envisaged to last until 1 August, 2012.  
 
(b) Should Phase 2 begin, Phase 2 is envisaged to have a duration of one (1) year.  
(c) If no understanding as referred to in  paragraph 5(d) is reached by the end of Phase 2, 
it is envisaged that this MOU will be c onsidered no longer applicable, unless both 
sides state otherwise in writing.  During a period of six (6) months following such an 
event, it is envisaged that the event as described in paragraph 2(c) would be 
maintained. 
(d) Either side may inform the other that it no longer envisages the events described in 
this MOU by providing written notice to the other side. Should either side provide such written notice, it is envisaged that this MOU would no longer be considered 
applicable six (6) months from the date su ch notice was provided. Should both sides 
provide such written notice, it is envisaged that this MOU would no longer be 
considered applicable  six (6) months from the earliest of the dates on which such 
notice was provided.   During this six (6) month period, it is envisaged that the 
provisions in paragraph 2, applicable at th e time of the provision of the written notice, 
would be maintained. 
7. (a) It is envisaged that neither Canada nor  the EU will request the establishment of a 
panel under Article 21.5 of the DSU in DS48 before 1 February 2011. 
(b) If a panel is established under Article 21.5 of the DSU in DS48 , it is envisaged that 
both sides will work together to ensure that: 
(i) The interim report is not issued; and 
(ii) The authority of the panel does not lapse due to the expiry of the period 
referred to in Article 12.12 of the DSU before the end of Phase 1, if neither 
side withdraws from Phase 1 before its conclusion, or Phase 2, if both sides 
should enter into Phase 2 and neither side withdraws from Phase 2 before its conclusion.  It is envisaged that Cana da and the EU will take the steps that WT/DS48/26 
Page 6  
 
  may be necessary to achieve those objectives.  Without limiting the foregoing, 
it is envisaged that Canada and the EU  would jointly request the panel to 
include in its Working Procedures that  the panel will provide notice to the 
parties five (5) weeks before issuing th e interim report; if the date of issuance 
of the interim report is during Phase 1 or Phase 2, Canada and the EU will 
request the panel to suspend its proceeding.  
(c) This MOU or Canada's or the EU's taking of any of the steps contemplated by this 
MOU is without prejudice to the disagreem ent between them regarding whether the 
DSB recommendations and rulings in DS48 have been implemented.   
(d) This MOU does not affect the rights and oblig ations of Canada and the EU under the 
Agreement Establishing the World Trade Organization.  
 
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